Safeguard Properties

Nor’easter Pummels New England with Heavy Snow, Strong Winds

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Disaster Alert
December 7, 2020

Source: The Weather Channel

NOTE: This has not yet been declared a FEMA Disaster.

At a Glance

  • A strong nor’easter hit New England during the first weekend of December.
  • Parts of four states saw at least 6 inches of snow.
  • More than 200,000 homes and businesses lost power in New England.

An early-season nor’easter, named Winter Storm Eartha by The Weather Channel, brought heavy snow and strong winds to New England during the first weekend of December.

This winter storm developed when two disturbances combined in the East, triggering the formation of a low-pressure system off the East Coast. That low became a “bomb cyclone” as it tracked from near North Carolina to near the coast of Maine Dec. 4-5, 2020. That means it had a pressure drop of 24 mb or more in 24 hours or less.

Parts of four states picked up at least 6 inches of snowfall from this storm, including Connecticut, Massachusetts, New Hampshire and Maine.

The storm’s heavy, wet snow and strong winds knocked out power to more than 215,000 homes and businesses in Maine by early Dec. 6, according to poweroutage.us. Nearly 60,000 lost power in neighboring New Hampshire.

For full report, please click the source link above.

CFPB: Executive Team Additions Announced

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Industry Update
November 30, 2020

Source: CFPB

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today announced additions to its executive team. The leadership positions are:

Matthew R. Bettenhausen serves as Senior Advisor and Counselor to the Director. Mr. Bettenhausen has over 17 years of federal service, principally as an Assistant United States Attorney with the Department of Justice in the Northern District of Illinois (Chicago). There he served as Associate Chief of the Criminal Division and Acting Chief of Appeals, among other supervisory positions, and engaged in many complex financial crime investigations and prosecutions. Mr. Bettenhausen earned his B.S. in Accountancy (currently a licensed CPA in Illinois) and J.D. from the University of Illinois Urbana-Champaign.

Chris Chilbert is the Chief Information Officer in the Bureau’s Operations Division. Mr. Chilbert has more than 20 years of federal service. Before joining the Bureau, he served as Assistant Inspector General for Information Technology at the U.S. Department of Health and Human Services’ Office of Inspector General where he led their adoption of modern management practices and technologies. Mr. Chilbert is a veteran of the U.S. Navy submarine force. He earned a Bachelor of Science in Systems Engineering from the U.S. Naval Academy and a Master of Business Administration from the College of William and Mary.

Janis K. Pappalardo is the Associate Director for Research, Markets and Regulations. Prior to joining the Bureau, Ms. Pappalardo served as Assistant Director for Consumer Protection at the Federal Trade Commission (FTC). In that capacity, she led the only division in the FTC’s Bureau of Economics devoted to the consumer protection mission. Ms. Pappalardo has served at the FTC for more than three decades and started as an economist conducting and initiating independent analyses on consumer protection matters. Ms. Pappalardo earned her doctoral and master’s degrees from Cornell University and bachelor’s degree from The Catholic University of America.

Donna Roy is the Bureau’s Chief Operating Officer. Her management experience of over 35 years spans working with Fortune 200 Financial Services companies through small, start-up experience as an entrepreneur. Ms. Roy served previously as the Bureau’s Chief Information Officer. Before joining the Bureau, she served for 13 years in several positions of increasing responsibility at the U.S. Department of Homeland Security, with leadership excellence recognized by both industry and federal government awards. She has over 20 years of federal government experience as a leader focused on innovative, customer-focused solutions within dynamic environments. Ms. Roy is a United States Marine Corps veteran. She is a graduate of Wades College in Dallas.

Deborah Royster is the Assistant Director, Office for Older Americans. Before joining the Bureau, Ms. Royster served as Chief Executive Officer of Seabury Resources for Aging, a nonprofit organization that provides affordable housing, transportation, care management and other support services to older adults and family caregivers in the Washington, D.C. region. Ms. Royster is a graduate of the University of Maryland and the University of Virginia School of Law.

CFPB: Advisory Opinions Policy Finalized

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Industry Update
November 30, 2020

Source: CFPB

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (Bureau) issued its final Advisory Opinions Policy (Policy) to publicly address regulatory uncertainty in the Bureau’s existing regulations and provide guidance to entities on outstanding regulatory uncertainty. Under the final Policy, entities seeking to comply with regulatory requirements can submit a request to the Bureau where uncertainty exists. Regulatory certainty promotes compliance if the law applies and avoids unnecessary compliance costs if the law does not.

Under the final Policy, any person or entity can submit a request for an advisory opinion via email to advisoryopinion@cfpb.gov. The Bureau will review the submissions received, prioritize certain requests for response, and issue opinions with a description of the incoming request. The Bureau may also decide to issue advisory opinions on its own initiative. To increase transparency, the Bureau will publish all advisory opinions in the Federal Register and on its website at: https://www.consumerfinance.gov/compliance/advisory-opinion-program/.

As explained in the final Policy, when selecting requests for consideration, the Bureau will prioritize open questions within the Bureau’s purview that can legally be addressed through an interpretive rule. The Bureau intends to further evaluate potential topics for advisory opinions based on additional factors, including: alignment with the Bureau’s statutory objectives; size of the benefit offered to consumers by resolution of the interpretive issue; known impact on the actions of other regulators; and impact on available Bureau resources.

In addition to the final Policy, the Bureau issued two advisory opinions today. The Bureau issued an advisory opinion regarding earned wage access (EWA) products. Earned wage access products have recently emerged in the marketplace as an innovative way for employees to meet short-term liquidity needs that arise between paychecks without individuals having to turn to other higher cost products. The Bureau has been asked whether EWA providers are offering or extending credit within the scope of Regulation Z. The advisory opinion aims to resolve regulatory uncertainty regarding the applicability of the definition of credit under Regulation Z and encourage further innovation in the EWA space.

The Bureau also issued an advisory opinion to clarify that certain education loan products that refinance or consolidate a consumer’s pre-existing federal, or federal and private, education loans meet the definition of “private education loan” in Truth in Lending Act and Regulation Z and are subject to the disclosure and other requirements in subpart F of Regulation Z. Lender compliance with these requirements will enhance the protection of borrowers who have taken out private educational loans.

A copy of the final advisory opinion program can be found here: https://files.consumerfinance.gov/f/documents/cfpb_advisory-opinion_policy_2020-11.pdf 

A copy of the advisory opinion regarding EWA programs can be found here: https://files.consumerfinance.gov/f/documents/cfpb_advisory-opinion_earned-wage-access_2020-11.pdf 

A copy of the advisory opinion regarding private education loans can be found here: https://files.consumerfinance.gov/f/documents/cfpb_advisory-opinion_private-education-loans_2020-11.pdf 

Mudslide Destroys Homes, Damages Infrastructure in Southeast Alaska

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Disaster Alert
December 2, 2020

Source: USA Today

Approximate locations reportedly sustaining structural damage:

Alaska
*Mudslides/Flooding
– Haines (Haines Borough, 99827)

NOTE: This has not yet been declared a FEMA Disaster.

Evacuations and search and rescue efforts were underway Wednesday after a record-breaking rainstorm swept across Southeast Alaska, triggering mudslides and widespread flooding.

Multiple precipitation records were broken Tuesday across the region, including a single-day rainfall record from 1946, according to the National Weather Service in Juneau.

“[Tuesday] was the wettest day ever recorded at our weather stations at the airports of Skagway, Haines and in Juneau,” Meteorologist Aaron Jacobs told USA TODAY, adding that some areas have seen 30 to 40 inches of snow.

Haines, a community of about 2,000 people located in the northern part of the Alaska Panhandle, has been among the most devastated cities. Six people were missing and four houses destroyed as of 5:30 p.m. AST Wednesday, according to the Alaska Department of Public Safety.

For full report, please click the source link above.

FHFA: Foreclosure and REO Eviction Moratorium Extension

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Investor Update
December 2, 2020

Source: FHFA

Washington, D.C. –Today, to help borrowers at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until at least January 31, 2021. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on December 31, 2020.

“Extending Fannie Mae and Freddie Mac’s foreclosure and eviction moratoriums through January 2021 keeps borrowers safe during the pandemic,” said Director Mark Calabria. “This extension gives peace of mind to the more than 28 million homeowners with an Enterprise-backed mortgage.”

Currently, FHFA projects additional expenses of $1.1 to $1.7 billion will be borne by the Enterprises due to the existing COVID-19 foreclosure moratorium and its extension. This is in addition to the $6 billion in costs already incurred by the Enterprises. FHFA will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed. To understand the protections and assistance offered by the government to those having trouble paying their mortgage, please visit the joint Department of Housing and Urban Development, FHFA, and the Consumer Financial Protection Bureau website at cfpb.gov/housing.

Contacts:

​Media: Raffi Williams Raffi.Williams@FHFA.gov / Adam Russell Adam.Russell@FHFA.gov

HUD: FHA INFO #20-89: 2021 Nationwide Home Equity Conversion Mortgage Limits

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Investor Update
December 2, 2020

Source: HUD

Additional Resource:

Mortgage Letter 2020-41: 2021 Nationwide Forward Mortgage Limits

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2020-42, 2021 Nationwide Home Equity Conversion Mortgage (HECM) Limits, which provides the Calendar Year (CY) 2021 maximum claim amount for FHA-insured traditional HECM, HECM for purchase, and HECM-to-HECM refinances. Read today’s Press Release.

The maximum claim amount for FHA-insured HECMs for all areas, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands, in CY 2021, will be $822,375; 150 percent of the Federal Home Loan Mortgage Corporation’s (Freddie Mac) national conforming limit of $510,400. This limit is applicable for case numbers assigned on or after January 1, 2021, through December 31, 2021. For additional details, refer to Mortgagee Letter 2020-42.

The maximum CY 2021 claim amount for FHA-insured HECMs will be included in a future Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) release.

Quick Links:

• View Mortgagee Letter 2020-42 and all other Mortgagee Letters at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

• View CY 2021 HECM limits information at:

–      FHA mortgage limits by county, state, or MSA at: https://entp.hud.gov/idapp/html/hicostlook.cfm

–      Complete listing of FHA loan limits by calendar year at: http://www.hud.gov/pub/chums/file_layouts.html

–      Maximum Mortgage Limits web page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/lender/origination/mortgage_limits

Winter Storm Bringing Wind-Driven Snow to Eastern Great Lakes, Appalachians

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Disaster Alert
November 30, 2020

Source: The Weather Channel

Additional Resources:

MASS LIVE (See the damages from Monday’s storm in Massachusetts)
Patch (Possible Tornado Causes Damage In Montgomeryville Area)
The Weather Channel (Winter Storm Knocks Out Power to Tens of Thousands From Ohio to Maine; Schools Closed)

Approximate locations possibly sustaining structural damage/flooding:

Maine
*Wind Damage
– Lewiston (Androscoggin County, 04240, 04241, 04243)
– Manchester (Kennebec County, 04351)

Massachusetts
*Wind Damage
– Hopedale (Worcester County, 01747)
– Westborough (Worcester County, 01581)

Pennsylvania
*Unconfirmed Tornado
– Montgomeryville (Montgomery County, 18936)
*Extensive damage reported near Susan Circle Drive
– North Wales (Montgomery County, 19436, 19454, 19455, 19477)
– Trappe (Montgomery County, 19426)

NOTE: This has not yet been declared a FEMA Disaster.

At a Glance

  • A winter storm will wring out more snow in the eastern Great Lakes and Appalachians on Tuesday.
  • Gusty winds will accompany the snow in some areas.
  • Travel will be difficult at times, especially south and southeast of Lake Erie.

December is starting out with a winter storm wringing out wind-driven snowfall in the eastern Great Lakes and Appalachians.

This weather system has been named Winter Storm Dane by The Weather Channel.

Winter storm warnings and winter weather advisories have been issued by the National Weather Service (NWS) from the eastern Great Lakes to the Appalachians. Cleveland, Ohio, and Erie, Pennsylvania are among the cities that are under a winter storm warning, which means travel in these areas could be difficult or impossible at times.

The National Weather Service reports that some areas on the southeast side of Cleveland have had more than a half-foot of snowfall as of Tuesday morning. Snowfall has been much less near the immediate shore of Lake Erie.

For full report, please click the source link above.

HUD: FHA INFO #20-88: Extension of Temporary Guidance on the Endorsement of Mortgages Under Forbearance

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Investor Update
November 27, 2020

Source: HUD (Corrected Version)

Today, the Federal Housing Administration (FHA) published  Mortgagee Letter (ML) 2020-39, Extension of Temporary Guidance for Endorsement of Mortgages under Forbearance for Borrowers Affected by the Presidentially-Declared COVID-19 National Emergency consistent with the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

This ML further extends the period for mortgage forbearance provisions provided under the CARES Act, as announced in ML 2020-16 on June 4, 2020. More specifically, ML 2020-39 allows mortgages to be endorsed for insurance when the borrower, after closing, has requested a forbearance due to the COVID-19 National Emergency.

Mortgagees may use the guidance in this ML immediately for pending endorsements through December 31, 2020.

Quick Links:

• View Mortgagee Letters 2020-39, 2020-16, and all other archived Mortgagee Letters at:
https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

MHA: End of Year 2020 HAMP Reporting System Availability

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Updated 12/14/20: MHA issued a reminder that the standard hours of operation for the HAMP Reporting System will be adjusted for end of year 2020.

HAMP Update: Reminder – End of Year 2020 HAMP Reporting System and HAMP Solution Center Availability

Investor Update
November 23, 2020

Source: MHA

Please be aware that the standard hours of operation for the HAMP Reporting System will be adjusted to the following schedule:

• December 21-22, 2020 – No HAMP Reporting System response files will be available
• December 23, 2020 – HAMP Reporting System will process any files submitted to the HAMP Reporting Tool after 4 p.m. ET on 12/18 through 2 p.m. ET 12/23 and send response files for those submissions
• December 24, 2020 – January 1, 2021 – No HAMP Reporting System response files will be available
• January 4, 2021 – HAMP Reporting System online for normal processing per standard hours of operation and will process any files submitted to the HAMP Reporting Tool after 2 p.m. ET on 12/23 through 1/3 and send response files for those submissions

During this timeframe, the HAMP Reporting Tool will be available for servicers to submit and upload HAMP loan data files, and the corresponding Black Knight response files will be provided as usual.

The “All Trial and Official Loan Data” Ad-Hoc report will not be available on 12/28/2020.
All other reports will be published by their expected dates in December. Additionally, the deadline for Servicing Transfer concurrence and AAA for Non-GSE will be extended to 1/7/2021.

MHA: Thanksgiving Holiday Support and System Availability

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Investor Update
November 18, 2020

Source: MHA

In observance of Thanksgiving, HAMP Reporting System response files will not be available on Thursday, November 26, 2020 and Friday, November 27, 2020. The response files will be sent when the system is online for processing at 9 a.m. ET, Monday, November 30, 2020.

During this timeframe, the HAMP Reporting Tool will be available for servicers to submit and upload HAMP loan data files, and the corresponding Black Knight response files will be provided as usual.

The HAMP Solution Center will close at 2:00 p.m. ET on Wednesday, November 25, 2020 and will resume monitoring of the support@hmpadmin.com mailbox at 9:00 a.m. ET on Monday, November 30, 2020.